RBI releases strategy for financial education, aims to create empowered India

Mumbai: The Reserve Bank of India on Thursday released a national strategy for financial education to be implemented in the next five years. The central bank said the multi-stakeholder led approach is aimed at creating a financially aware and empowered India.

The strategic objectives include inculcating financial literacy concepts among various sections of the population through financial education to make them an important life skill. Besides encouraging active savings behaviour, it will encourage participation in financial markets to meet financial goals and objectives.

The strategy will develop credit discipline and encourage availing credit from formal financial institutions as per requirement. Besides, it will improve usage of digital financial services in a safe and secure manner.

The objectives include managing risk at various life stages through relevant and suitable insurance cover besides planning for old age and retirement through coverage of suitable pension products.

It also includes knowledge about rights, duties and avenues for grievance redressal. It will improve research and evaluation methods to assess progress in financial education.

To achieve these strategic objectives, the document recommends adoption of a '5 C' approach for dissemination of financial education through emphasis on development of relevant Content (including curriculum in schools, colleges and training establishments), developing Capacity among the intermediaries involved in providing financial services, leveraging on the positive effect of Community led model for financial literacy through appropriate Communication Strategy, and lastly, enhancing Collaboration among various stakeholders.

The strategy also suggests adoption of a robust monitoring and evaluation framework to assess the progress made.